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DEPARTMENT OF NATURAL RESOURCES <br />FY 98-99 <br />SEVERANCE TAX BUDGET REQUEST <br />Statutory Purpose: Funding Programs that Promote and Encourage Sound Natural <br />Resoerrce Planning, ~Lfanngement and Development Re/aced to /Lfinera/s, Energv, <br />Geology and Water. <br />DIVISION OF: Minerals and Geology, Coal Regulatory Program <br />PROGRAM/PROJECT: Coal Mine Environmental Remediation Fund (CERF). <br />PROJECT STATUTORY AUTHORITY: 34-33-12.5, to be created <br />FUNDING -FTE TREND <br />ACTUAL ESTIMATE REQUEST <br />FUNDING FTE FUNDING FTE FUNDING FTE <br />0 0 0 0 $190,000 0 <br />NARRATIVE <br />Program/Project Description: Since 1980, when the Colorado coal regulatory program <br />was created by the General Assembly, 16 coal mine sites have been subject to permit <br />revocation and bond forfeiture. Fifteen of these sites have been reclaimed through the use <br />of private contractors. DMG staff served as project managers and all reclamation work <br />was paid for from bond forfeiture proceeds. One site is currently in the process of being <br />reclaimed. Additional reclamation work or site maintenance work is needed at several of <br />these sites but very little or no bond forfeiture proceeds remain. Therefore, in order to <br />complete the reclamation or maintain environmental protective measures at these sites, an <br />additional source of funding must be found and statutory authority to expend these <br />additional funds must be granted. <br />Background: During the permit review and approval process undertaken by the DMG, <br />a detailed estimate of the cost of conducting reclamation is made. This estimate is used <br />as the basis for the amount of the reclamation bond requested from an operator.upon <br />issuance of a permit. V/hat we have Teamed from experience during the past several years <br />is that estimates which were conducted in the very early years of the coal program, early <br />] 980's, were not conservative enough concerning costs, did not anticipate events which <br />